Episode 42: IPOs, Indexing and Market-Linked GICs: Weighing Up Their Worth

Welcome to this episode of the Rational Reminder Podcast! We’ve decided to tweak the format of the show slightly, so you can look forward to a more focused conversation around current and portfolio topics and much less talk about factors! In our talk today, we uncover the recent popularity of IPOs, giving you a balanced perspective so that you can decided for yourself whether the hype holds enough merit for you to get involved. We also get into the various arguments against indexing, pulling apart all the factors to keep in mind, and then advise you on choosing account types based on your individual financial needs. In wrapping up our talk, we also reveal our pick for the worst advice that we’ve heard in the previous week and why you need to stay far, far away. For all this and more, be sure to join us!

Key Points From This Episode:

  • How we are changing up the format of the episodes. [0:01:50.0]

  • A closer look at the two Canadian funds with class action lawsuits against them. [0:03:46.0]

  • Investigating the current IPO frenzy and whether there is merit in the hype. [0:07:40.0]

  • How to get an IPO allocation and the possible terms and conditions. [0:11:59.0]

  • A breakdown of the arguments against indexing. [0:13:46.0]

  • Why indexing is risky and the issue of a lack of control. [0:14:24.0]

  • Weighing up the degree to which the skills of fund managers play a role in indexing. [0:19:46.0]

  • Factors to consider when deciding on the type of account that you want to allocate to. [0:23:26.0]

  • The advisable cascading order in which to fill up your accounts. [0:26:37.0]

  • The complexity with market-linked GICs and what the basic premise is. [0:35:50.0]

  • And much more!

Episode 41: The Future of Canadian Fintech: Leading the Charge with Robo-Advisors

On the show today we welcome Randy Cass, owner and founder of Nest Wealth, who were the first financial firm to employ the use of robo-advisors in Canada. Their unique business model and forward looking systems and practices are at the forefront of the industry in the country and hearing Randy's recollections from their processes as well as thoughts going forward will be of great interest to anyone interested in the future of their money. In our conversation we cover the basic history of Nest Wealth and what inspired their big decisions. Randy unpacks their fee structure and how some of the systems work and have changed over the last few years before going into the ins and outs of how robo-advisors field questions. Our guest also comments on the financial market's constant evolution and his personal and professional attitude to passive investment strategies. We chat about obstacles that currently stand in the way of the fintech industry and finish off the episode with Randy explaining his iterative approach to development as technology advances. For all this and more, be sure to tune in!

Key Points From This Episode:

  • How Randy decided to launch the first robo-advisor service in Canada. [0:02:17.3]

  • The evolution of the systems used by Nest Wealth since its inception. [0:04:25.1]

  • Nest Wealth's unique fee structure. [0:06:38.0]

  • Handling questions from clients at the firm. [0:09:50.0]

  • Nest Wealth's place in the evolving financial advice market. [0:13:23.8]

  • How Nest Wealth use technology to scale financial advice. [0:19:04.8]

  • Randy's attitude towards passive and active investment management. [0:22:57.8]

  • Some of the notable obstacles that Randy has encountered in Canadian fintech. [0:25:32.1]

  • Looking forward to the future of the industry and developing iteratively. [0:29:19.0]

  • How Randy measures success in his life. [0:31:39.4]

  • And much more!

Episode 40: Five Factor Thinking: Using Factors to Spot Trends and Guide Decision Making

On today’s episode, Benjamin Felix and Cameron Passmore discuss a paper that Benjamin recently wrote called Factor Investing with ETF’s, which unpacks what factors are and why they are a useful tool in explaining performance. Before discussing Benjamin’s paper, they take some interesting detours, discussing annuities and the newly launched ALDA, why annuities are underutilized and what makes them different from portfolios. Along with this, they also cover some questions that can be asked to measure past performance of funds as well as luck versus skill. They share their insights into the Fama-French three factor model, how it evolved into a five-factor model and why they believe this to be a reliable way to read trends. For all this and a whole lot more, join us today!

Factor Investing with ETFs

Key Points From This Episode:

  • Seller’s Capital: a hedge fund with an interesting investment philosophy. [0:02:46.0]

  • The four questions to ask if you see why past results were good. [0:07:00.0]

  • What it would take for results to be statistically significant. [0:07:54.0]

  • Growing evidence of poor skill level of hedge fund manager. [0:09:53.0]

  • Good returns are not related good decision making. [0:11:27.2]

  • Annuities are underutilized and why it makes sense to use them more. [0:17:00.3]

  • Annuities versus portfolios. [0:18:58.3]

  • Some figures from the Dimension paper which was written. [0:23:26.3]

  • What factors are. [0:26:41.3]

  • What can be learned from the Fama-French model. [0:30:41.3]

  • What the five factor model can help with. [0:33:48.0]

  • Some critiques of using the factors. [0:38:50.0]

  • Benjamin provides examples of using factors for evidence. [0:40:10.0]

  • And much more!

Episode 39: Steering Away from the Financial Extremes with Rob Carrick.

Today on the show we are joined by Rob Carrick from The Globe and Mail! Rob has been writing about money and investing for almost 30 years and has a wealth of expertise and insight to share on everything from mutual funds to ETFs. In our discussion we cover common questions that Rob encounters, how his views have changed over the years, the parts of his job he has most enjoyed and his thoughts on where we are at right now. Rob comments on the feelings of worry and dissatisfaction that seems to characterize Canadian finances at the moment and talks about the FIRE Movement and lessons for the next generation. For all of this great content and much more, be sure to join on the podcast today!

John Robertson’s spreadsheet

Key Points From This Episode:

•    The most common questions that Rob receives. [0:02:47.8]

•    Rob’s shifting perspective on seeking out an advisor.  [0:04:41.5]

•    Why Rob has traditionally enjoyed writing about housing investments [0:07:49.9]

•    The current financial climate and Rob’s take on it. [0:10:14.4]

•    Reasons why current financial worries are justified. [0:13:08.1]

•    The rise in popularity of ETFs. [0:14:50.9]

•    The bad rep that mutual funds have been getting recently.  [0:18:37.4]

•    Good practices for parents to teach their children about money. [0:21:42.2]

•    The FIRE Movement and comparing generational attitudes.  [0:24:56.6]

•    Rob’s own many practices and who he goes to for advice. [0:30:39.5]

•    How Rob defines success. [0:35:23.5]

•    And much more!

 

Episode 38: Feelings in the Decision Making Process: A Reminder About Rationality

Today on the show we are taking about the influence of feelings in the decision making process. As investors and as humans in general, we tend towards making decisions based on feelings over rational and well-balanced data collection, that is just part of how we are wired. Here at the Rational Reminder Podcast we want to remind everyone of the importance of balancing these feelings with rationality. This does not mean that we should be making decisions without feelings but just to keep in mind our own biases and how these work to our detriment. In our discussion we cover what a good decision might look like, the two systems of thought as detailed by Daniel Kahneman and the importance of framing when approaching a weighty choice. We also run through a little on the safe savings rate and the ETF model portfolio. We end off with some useful strategies that can help you to make better decisions, especially when it comes to your money. For all this and a whole lot more, be sure to tune in today!

Factor Investing with ETFs White Paper

Key Points From This Episode:

  • The recurrence of feelings in decision making. [0:03:56.5]

  • Lack of data in the safe savings rate research. [0:05:18.2]

  • The ETF model portfolio and where to find it online. [0:10:53.8]

  • A few of the twenty craziest investing facts ever! [0:12:13.5]

  • What is a good money decision? [0:15:06.1]

  • Confirmation bias and influences on our decision making. [0:18:50.9]

  • Kahneman and the two systems of thought. [0:20:10.9]

  • The effects of past experiences on our current strategy. [0:24:46.3]

  • Framing as part of the discussion and decision making process. [0:27:36.2]

  • Four things you can do to implement better decision making. [0:30:12.6]

  • And much more!

Episode 37: Spending and Budgeting: Aligning Your Values and Goals To Your Finances

Welcome to Episode 37 of the Rational Reminder Podcast. On today’s show we are joined by Lindsay Plumb, Chief Coach-ess of MOOLA Financial Coaches and Advisors. We’re discussing spending and budgeting, because that’s kind of the opposite end of the spectrum of what we always talk about. We usually assume people already have wealth, but that’s not always the case. Even if you do, both spending and budgeting are super important. Just getting in line with your values and what you spend money on, that affects everybody, no matter how many assets you might have. So in this episode we dive into what it means to have an understanding and alignment of what your values are and what your goals are and how that should inform your financial decisions. We’re helping you help yourself and for that we’ve brought in the Chief Coach-ess with the most-ess. So, for all this and more, keep listening!

Key Points From This Episode:

  • Hear about Lindsay’s background and what she does within MOOLA. [0:02:20.0]

  • Why budgeting is so hard. [0:03:35.0]

  • Discovering your goals and articulating your values. [0:04:56.0]

  • Using a tool that allows you to stick to a budget. [0:05:48.9]

  • Understanding the difference between budgeting and tracking. [0:07:40.0]

  • Why people blow out their budget on food. [0:08:32.0]

  • Coaching people to change their behaviour. [0:09:47.0]

  • How Lindsay advises her clients to coach their kids to modify their behavior. [0:12:41.0]

  • Speaking in somebody else’s language, especially kids. [0:14:13.0]

  • How to do bank accounts as couples. [0:16:48.0]

  • Sudden wealth and how it can affect someones relationship with money. [0:21:50]

  • Retirement and planning for philanthropic or legacy goals. [0:24:50]

  • How Lindsay defines success in her own life. [0:29:30.0]

  • And much more!

Episode 36: ETF Model Portfolios: For Performance and Comparison Purposes

Welcome to Episode 36 of the Rational Reminder Podcast. Today we are going to roll out our new ETF model portfolios. This includes only two new ETF’s compared to a couch potato type portfolio that many of you might be familiar with. Nothing too revolutionary, but it certainly makes a meaningful difference. In this episode we also talk about asset location and review a couple of great podcasts that we’ve been listening to that provide interesting tidbits for investors, and some great information about the evolution of the industry, and about working with the clients. So, for an incredible conversation, be sure to join us!

 

White Paper: Factor Investing with ETFs

Key Points From This Episode:

  • Slicing up your portfolio for tax efficiency purposes. [0:01:57.6]

  • Controlling for pretax or after tax asset allocation. [0:05:0]

  • Optimal asset locations - highest yielding assets in tax free accounts. [0:06:05.0]

  • Having the same asset mix across all your portfolios & forgetting asset location. [0:09:51.1]

  • Intricate versus complex adaptive. [0:12:22.0]

  • The benefits of working with an adviser. [0:15:32.7]

  • Holding yourself accountable if you’re going at it alone. [0:17:09.0]

  • How it is much harder to find missed prices in the marketplace even for an expert. [0:19:40.0]

  • A history of the financial advice business and how it’s evolved into what it is today. [0:21:29.0]

  • Index investing and where people get their information from. [0:23:33.0]

  • ETF model portfolios that truly offer exposure to the factors. [0:26:11.0]

  • Why people should be thinking about small cap in value. [0:31:38.0]

  • And much more!

Episode 35: Findependence: Finding Financial Independence While Still Engaging In The Things You Love.

Welcome to Episode 34 of the Rational Reminder Podcast. Today on the show we are joined by Jonathan Chevreau who is the founder of Independence Hub. He has authored and co-authored many books and has contributed to The Globe and Mail, The Financial Mail, and Money Sense. Jonathan is here today to talk about financial independence and having that “findependence” while still being extremely engaged in things that you enjoy doing. He also shares with us why your aim shouldn’t be retirement and what he means by a victory lap. We also dive into the role that media plays in investor behaviors and exactly what Jonathan defines as a success life. Jonathan’s insights on financial independence alone are incredibly valuable, and anything on top of that is simply a bonus! So, for an incredible conversation, be sure to join us!


Key Points From This Episode:


  • How the perception of retirement is changing. [0:02:20.9]

  • Understanding The Victory Lap Retirement. [0:04:13.2]

  • Why financial independence and retirement aren’t the same thing. [0:04:40.0]

  • When it is time to consider the full stop retirement. [0:06:47.0]

  • Jon’s views on the FIRE movement (Financial Independence, retire early). [0:07:52.0]

  • The importance being on the same page as your spouse. [0:12:02.0]

  • How paying off his mortgage early on was highly beneficial for Jon. [0:14:53.0]

  • Investing in real estate as a source of income. [0:16:20.0]

  • Where annuities should fit into your long term plan. [0:18:08.0]

  • ETF’s and how they have affected the way people manage their investments. [0:22:20.0]

  • Being aware of inflation during your victory lap phase. [0:24:09.0]

  • Hear more about the role of media in investor behavior. [0:26:20.0]

  • Jonathan’s definition of success in his life. [0:29:12.0]

  • And much more!

Episode 34: The Safe Savings Rate: Shifting the Focus Away from Wealth Accumulation

Welcome to Episode 34 of the Rational Reminder Podcast. Today we are discussing how our new ETF model portfolios will be employed to better accommodate our non-client listeners to whom Dimensional Fund Advisors are not as relevant. We talk about how BlackRock and Vanguard are dominating the market, why the US is leading in passive investment and why traditional financial planning needs to be re-evaluated. In addressing our main topic—safe savings rates—we explore the need for moving away from a focus exclusively on wealth accumulation to an approach more concerned with a safe savings strategy. We ask the all-important question, “How much will I need a month when I stop working?” and provide helpful guidelines on how focusing on the process rather than on the number that can help you to achieve your financial goals. Join us today to find out how you can adopt a safe savings approach! 

Key Points From This Episode:

  • How we will accommodate non-client listeners using ETF model portfolios. [0:03:34.0]

  • The issue of accessibility with Dimensional Fund Advisors. [0:04:51.0]

  • How the world is exploding with asset allocation ETFs. [0:05:26.0]

  • The dominance of BlackRock and Vanguard in the market. [0:09:33.0]

  • How the US is leading in passive management. [0:10:06.0]

  • What the Vanguard-effect does [0:10:27.0]

  • Investing in factor funds versus portfolios of factor funds. [0:11:17.0]

  • The benefit of having a one-decision portfolio that has a variety of different factors. [0:13:28.0]

  • Factor returns versus smart beta returns. [0:15:33.0]

  • Why low beta looks good on the factor side, but bad on the implementation side. [0:16:19.0]

  • More about the 4% rule. [0:17:35.0]

  • The four steps of traditional financial planning. [0:18:06.0]

  • Pfau’s suggestion for a better alternative to traditional financial planning [0:20:27.0]

  • What your savings rate should be [0:24:00.0].

  • The benefit of having a safe savings approach rather than focusing on wealth accumulation. [0:25:09.0]

  • The challenge of knowing how much you need when you stop working. [0:25:49.0]

  • Why you need to focus on the habit rather than on the target. [0:27:10.0]

  • And much more!

Episode 33: Low Cost Index Investing with Rick Ferri: What You Need To Be a Successful Index Investor

Today on the show we are joined by Rick Ferri. Anyone who follows or is interested in index investing will probably have read something of Rick’s. He’s written seven books, working on the eighth, and he’s written a ton online as well. Rick opened Portfolio Solutions, the first low fee index fund based wealth management shop and built it up to over a billion dollar company. Rick created the model of low cost fiduciary advice, using index funds and putting the client first, so today we’re chatting to him all about it. Inside this episode Rick shares why he is so passionate about low cost index investing, the four levels of an index investor, and the requirements for being a good index investor in the long term. We also talk about his relationship with John Bogle, who recently passed away. It was a pretty meaningful conversation! For this and more, be sure to join us on today’s episode!

Key Points From This Episode:

  • Rick’s passion for low cost index investing. [0:02:24.0]

  • The four levels of an index investor. [0:05:0]

  • Dimensional funds: active management that uses factor based investing principles.[0:10:29.0]

  • None market risk factors fitting into a portfolio. [0:11:54.0]

  • Rick’s thoughts on the price and the value around behavioral coaching. [0:13:44.0]

  • The future of robo-advisers. [0:18:14.0]

  • Three things required for a person to be a good index investor in the long term. [0:18:54.0]

  • Not indexing yet? - You need repetition, repetition, repetition. [0:20:28.5]

  • Having more assets than they’ll ever need in term of their equity exposure. [0:22:40.0]

  • John Bogle as a person and how he changed the financial services industry. [0:24:33.5]

  • How Rick defines success. [0:29:05.0]

  • And much more!


Bonus Episode: Building a Future for the City: An Interview with Mayor of Ottawa, Jim Watson

We have a special, short bonus episode for you today! We are very glad to welcome the mayor of Ottawa, Jim Watson, to the podcast and although we are not strictly talking about investing and our usual topics, we do think it is a great and insightful conversation that you will enjoy, no matter where you are from. Mayor Watson tells us about his vision for the city, how he characterizes it, and the importance of the tech scene to its growth and success. We also talk about talent attraction and retention, social media in politics, budgeting, and his greater mission while in office. Be sure to tune and hear it all, here on the Rational Reminder Podcast!

Key Points From This Episode:

  • The mayor’s description of Ottawa. [0:02:24.7]

  • Ottawa’s tech scene and the impact of companies like Shopify. [0:03:16.2]

  • Attracting and retaining talent in the city. [0:05:48.8]

  • Implementing a vision through daily work. [0:07:38.4]

  • The role of social media in the job of the mayor. [0:08:53.7]

  • Mayor Watson’s greater mission in politics. [0:11:06.6]

  • Budgeting and balancing expectations around this. [0:12:55.1]

  • And much more!

Episode 32: Active or Passive Management: The Behavioural Explanations of Factors

Welcome back to another episode of the Rational Reminder Podcast. Our goal this year is to find our podcasting rhythm, creating a schedule that alternates between guests and these conversational episodes where it’s just us.

On today’s episode we want to pull the focus of the podcast back to answering a handful of client questions that have come up in the past little while.

So on today’s episode we are jumping right in to answer those listener questions, getting back on the factor train, and trying to get to the root of the desire for face-to-face investment advice. We also talk about a few articles as well, including some of the biggest headlines in investment news, and why it it critical to not only save for but also make plans to fulfill the vision of your retirement. So for another insightful episode answering all of your questions, stay tuned!

Key Points From This Episode:
• Discussing recent stand-out investment articles. [0:03:12.0]
• Unpacking the debate between active and passive investment management. [0:07:11.0]
• Why using factors is not another flavor of active management. [0:10:43.0]
• Understanding market caps surrounding factors. [0:14:41.0]
• Evaluating the worth of a stock that has not dividends or profit sharing. [0:16:46.0]
• Planning for retirement, or not retiring at all: the retirement trends of today. [0:19:53.0]
• Wealthsimple’s premium advice option: the value of dealing face-to-face [0:23:44.0]
• The lost Bitcoin wallets crisis; understanding centralized versus decentralized [0:30:44.0]
• And much more!


Episode 31: Single Decision ETFs: Unpacking XGRO and XBAL from BlackRock

Today on the show we are joined by Steven Leong who is the Head of Canada iShares Product at BlackRock. Steven is here to talk about single decision ETFs, the new XGROs and XBALs from BlackRock and whole lot more. We start off the episode with a bit of an introduction on BlackRock and iShares before Steven informs us on the new relationship between BlackRock and RBC Global Asset Management. From there we get into the meat of the episode looking at the portfolios in question and Canada’s current positioning in the global trends. We talk about some of the great advantages that these funds offer investors and Steven shares his ideas on the current role of the financial advisor with regards to the rise of passive investing. We are lucky enough to have Steven offer his perspective on a slew of related topics before ending off with two great pieces of advice for our listeners. For this and more, be sure to join us!

Key Points From This Episode:

  • A quick overview of BlackRock’s scope and size [0:02:44.0]

  • BlackRock’s relationship with RBC Global Asset Management. [0:04:35.8]

  • A little about the XGRO, the XBAL portfolios. [0:06:32.3]

  • Overweighting in Canada in common model portfolios.. [0:08:52.1]

  • The advantage of automatic rebalancing for the investor. [0:11:06.3]

  • The evolving role of the trusted financial advisor. [0:12:27.4]

  • Sharp downturns in fund fees and the results of this trend. [0:15:01.8]

  • Canada’s relatively slow uptake in index funds and iShares’ factor products. [0:19:46.9]

  • The future of active versus passive investing. [0:25:21.2]

  • Two pieces of investment advice from Steven! [0:27:14.7]

  • And much more!

Episode 30: The Authority Speaks: A Complete Guide to Investing and Retirement with Larry Swedroe

Today we are joined by a friend, hero, and a legend in the field fact based investing. Larry Swedroe is here to discuss his latest book, some of the timeless concepts he has been espousing for many years, and to give out a few golden nuggets of advice for your finances and retirement. Larry is so generous with his time and wisdom and we chat about a ton of chapters from his book, Your Complete Guide to a Successful and Secure Retirement, and he picks out a few ideas to focus on here in this quick discussion. Larry shares the biggest mistake he has noticed in retirement planning, lifestyle considerations moving into the final stages of life, estate transfer, underperforming stocks, and more! We draw on Larry’s wealth of experience to get some perspective on more current trends in the industry such as the fixation on costs of advisors and we finish off hearing from Larry about how he defines success as he nears the end of his professional career. For all this and more, be sure to join us for an extra special episode!

Key Points From This Episode:

  • The four horsemen of the retirement apocalypse. [0:03:03.4]

  • Larry’s pick for the biggest mistake made in retirement planning. [0:06:32.9]

  • Non-financial considerations for those heading into retirement. [0:09:22.7]

  • Day to day preparations for finding meaning in the retirement years. [0:13:04.5]

  • Why it is important to expose yourself to independent risk factors. [0:15:34.6]

  • Understanding the reasons for never actually avoiding factors. [0:26:53.9]

  • How to avoid losing assets during the transfer of an estate. [0:29:16.4]

  • Taking underperformance into account when considering your investments. [0:32:58.3]

  • Looking at the financial industry’s shift in focus towards costs. [0:37:06.1]

  • Larry’s own definition of success moving into the end of his career and retirement. [0:41:55.1]

  • And much more!

Episode 29: Clearing Up the Holiday Back-Up: Podcast Housekeeping and Round Up

Welcome back to The Rational Reminder Podcast! Today we are riding solo with no guests and just going over some recent developments, in-house news, and gearing up for some more great shows in the pipeline. We have had so many amazing guests recently, talking on a number of specific topics, so we thought we would take this opportunity to clean the mailbox, as it were, and set the table for the next few weeks. During the episode we cover the new partnership between RBC and iShares and what this means going forward and we also look at the state of ETFs and how much they have grown in the last few years. We talk about the impetus to go to cash that many investors and advisors seem to be considering and also discuss global diversification and how this is the truest representation of a belief in capitalism. We talk data, advertising, tax and the supposed market monopolies that the biggest companies in the world have right now. For all this and more, be sure to join us!

Key Points From This Episode:

  • We are hiring! [0:01:40.0]

  • The new alliance between RBC and iShares. [0:02:23.3]

  • The growth for ETF in comparison with mutual funds. [0:05:31.9]

  • Does it make sense for long term investors to go to cash? [0:06:14.7]

  • Globally diversified investments in international markets. [0:08:30.2]

  • Are we living in a winner takes all market right now? [0:14:36.4]

  • How data has overtaken oil as the most valuable resource. [0:20:54.2]

  • CPPIB’s controversial advertising strategies. [0:23:50.6]

  • A few quick tax updates. [0:26:30.6]

  • And much more!

Episode 28: Staying Ahead of the Curve: The History of Dimensional Fund Advisors

Today on the podcast we are very excited to welcome Brad Steiman who is the Canadian Head of Financial Advisor Services for Dimensional! This is an episode we literally cannot wait to share with our listeners as it is jam packed with really useful information, history, and inside scoops on Dimensional and what has helped them get to where they are today. As huge fans and associates of DFA this is the type of conversation we have been hoping to have for quite some time and hope you are as excited as we are. In our discussion, we cover Brad’s early career and how he became involved and employed by Dimensional. From there, Brad gives us some great insight into the important early events that shaped his and the companies trajectories as well as laying out the vital characters in DFA’s story. We also get into some of the ideas and the ethos that underpins the work done at the company, particularly around research, findings and implementation. For all of this and host of other interesting subjects be sure to join us for this episode!

 

Key Points From This Episode:

 

  • Brad’s initial attraction to working at Dimensional. [0:01:45.5]

  • The college years and the following epiphanies. [0:02:37.9]

  • Why Brad did not look at his early paychecks at Dimensional. [0:06:29.3]

  • How David Booth preempted the evidence-based approach. [0:08:53.1]

  • Dimensional’s continual approach to new research and data mining. [0:14:55.5]

  • The criteria Dimensional apply when assessing findings. [0:17:26.9]

  • Brad and Dimensional’s philosophy when it comes to stock momentum. [0:20:41.1]

  • The implementation strategy at Dimensional. [0:25:51.1]

  • ETFs versus mutual funds and Dimensional’s decision in this battle. [0:28:05.1]

  • Dimensional’s unique approach to working with the advisor community. [0:30:51.5]

  • Three of Brad’s favorite stories from his time at the company. [0:32:49.6]

  • Brad’s science based approach to happiness! [0:37:34.1]

  • And much more!

Episode 27: Evidence Based Investing: Changing the Minds of Advisors and Investors with Robin Powell

In this episode of the Rational Reminder Podcast we welcome Robin Powell. Robin is a journalist and content creator who has dedicated the more recent part of his career to helping spread the word on research backed investing and turning the tide on the history of investment advice. For Robin, this all came about from an assignment he was working on and the feeling of shock he experienced when he discovered the wealth of information that is available to investors but how it is shielded by the majority of investment advisors. Robin explains these experiences and why we still see this in today’s marketplace. He chats to us about the films he has produced on the subject and the great characters and thought leaders with whom he has met. Robin is kind enough to open up about his thoughts on the future of investing, regulation and his hopes for the spread of this information. For all this and more, be sure to join us!

Key Points From This Episode: 

  • Some of Robin’s background and previous work experience. [0:01:40.6]

  • Why Robin started spreading the evidence based investment message . [0:02:38.9]

  • The experience of speaking with industry leaders to make a documentary film. [0:04:07.7]

  • The impact of this and the subsequent films Robin has produced. [0:05:44.0]

  • Robin’s perspective on the Canadian financial industry. [0:06:57.8]

  • The impact of the change of rules for financial advisors in the UK. [0:09:21.6]

  • The effect of RDR and claims about reduced access to advice. [0:12:24.2]

  • Difficulties in sharing information and changing people’s minds. [0:15:06.0]

  • The role of the press in this dynamic and whether it can change [0:16:52.2]

  • Robin’s favorite interviews and encounters over the years. [0:18:07.4]

  • Looking to the future of the financial industry. [0:19:53.5]

  • Considering the role of the human financial advisor with the rise of robo-advisors. [0:21:40.1]

  • Robin’s own measure of success in his work [0:22:59.9]

  • Regulation in the pursuit of changing the approach of advisors. [0:24:28.9]

  • And much more!

Episode 26: Embracing Uncertainty: Planning Ahead and Taking On the Risk with Big Bang Theory Writer, David Goetsch

Welcome to this holiday edition of the Rational Reminder Podcast. Today on the show we have a special treat for you. A little while back, Cameron made an incredible connection with our guest, David Goetsch. David is a writer and the Co-Executive Producer of the Big Bang Theory. David himself subscribes to our investment philosophy and he is passionate enough about it that he speaks about it at conferences every now and then. He is truly a fascinating guy and the impact that this investment philosophy had on him is unreal. Inside this episode David shares with us how he used to a be a self-described worrier who worried about every little thing in his life. But once he had his eyes opened up to this philosophy, it changed him forever. He now embraces uncertainty, he embraces risk, he is not worried about his portfolio at all, and it has given him a great amount of peace in his life. For an incredible conversation with an absolutely changed man, stay tuned to hear it all!

Key Points From This Episode:

  • How David’s financial advisor changed his entire life. [0:02:46.3]

  • What it means to become a transformed investor. [0:08:32.1]

  • The greatest impact that David’s philosophy had on his life. [0:10:19.7]

  • David’s relationship with his financial advisor; meetings, and guidance. [0:14:03.6]

  • How to think about the fees you pay your financial advisor. [0:16:11.1]

  • David’s miscalculation of risk in his life; moving to Hollywood. [0:22:36.0]

  • The journey of David’s career as writer in Hollywood. [0:27:17.3]

  • Schedule and writing process of the Big Bang Theory. [0:34:23.1]

  • How David defines success and happiness in his own life. [0:37:43.0]

  • The story of when David got check 1 of 104 from Big Bang Theory. [0:39:51.8]

  • And much more!

Episode 25: The Year End Round Up: Recapping Recent Market Performance

This week on the podcast we are starting to wrap things up for the year, doing some house keeping and looking back at recent trends in the market. First of all we talk a bit about the podcast going forward and have a few comments on ratings and reviews. We also look at some of the upcoming content you can expect early next year! We chat about the client survey we recently held and what the data from this tells us. From there we move into more general information on the relationship between risk and profitability and try and explain why they are so closely linked. We also get into the market’s performance this year and the apparently bad year it has had. This exploration is located in the broader context of historical data and evidence based investing strategies and we try our best to show how a bad year like 2018 is not a reason to be reactive in you investments. For this and more, join us today!

Key Points From This Episode:

 

  • The first critical review of the podcast. [0:01:52.3]

  • Some of the upcoming content for the new year. [0:02:52.0]

  • The recent client survey which we completed. [0:04:56.3]

  • Interesting data that we collected during this survey. [0:07:02]

  • The blog post from Michael James about our chat with Glenn Cooke recently. [0:08:57.8]

  • How is being profitable riskier? [0:12:39.9]

  • Behavioral explanations for factors and market timing. [0:15:10.7]

  • The market this year and how it has dipped. [0:16:13.3]

  • Comparing this year’s downturn with 2008. [0:17:38.6]

  • This generation’s investors and risk seeking. [0:21:04.7]

  • Understanding standard deviation in this context. [0:22:58.3]

  • The potential impact of social media on markets compared to 2008. [0:26:02.4]

  • The human bias towards action when in danger. [0:27:12.8]

  • Don’t leave your seat to get a hot dog! [0:29:04.2]

  • And much more!

Episode 24: Evidence: What To Follow And What Not To Follow

Welcome back to The Rational Reminder Podcast. Today, Benjamin is getting the factor fill off his chest. We are diving into a range of topics and we are talking about other factors or how far you can push the evidence. This is the first time in a while that we’ve really dug into factors. We cover other interesting topics like increasing CPP benefits, we talk about our regulatory bodies and the debate going on there, as well as the big news around Vanguard. It’s a fun debate and a  good conversation. So, keep listening to hear more!

Key Points From This Episode:

  • How CPP is expanding in 2019. [0:01:48.0]

  • Advocis putting the business interest of financial advisers before clients. [0:05:0]

  • The rumor circulating about Vanguard. [0:10:22.0]

  • A none story - How asset owners are falling out of love with index funds. [0:13:00]

  • Why the rich aren’t happy, why more money does not make people happier. [0:15:44.0]

  • Factors of a way to beat the market and why factors work. [0:17:38.0]

  • Factor regression on portfolios. [0:22:46.0]

  • Long versus short stock picking. [0:27:43.0]

  • And much more!